Nordic exits The Binding Site to trade in 'best ever' deal

"The Binding Site has been the best investment in Nordic Capital's 30+ year history," Jonas Agnblad, founding member of the GP's healthcare team, told Unquote.

The firm is to reap a 19x return on money, according to a source familiar with the situation.

Five Arrows, which also invested in the business in 2011, is exiting its stake under the transaction. 

Buyer Thermo Fisher has acquired The Binding Site in an all-cash transaction for an 11.8x revenue multiple, saying that it will enhance its specialty diagnostics portfolio. 

The Binding Site is growing at 10% annually and is on track to deliver USD 220m in revenue for 2022, according to a statement from Thermo Fisher.

The transaction is expected to close in the first half of 2023. Upon completion, the Binding Site will become part of Thermo Fisher's Speciality Diagnostics segment. 

Nordic first acquired the company in 2011, moving the asset to CV1, a multi-asset continuation vehicle, in 2018. The sponsor saw a lot of interest from industrials and sponsors to buy the asset over 11 years but decided that its journey was not over. "We see the proof of that today," said Agnblad.

"Since Nordic Capital invested in 2011, sales have increased five-fold, tests sold increased by 4x, and earnings increased almost 10x backed by strong operating leverage," he added. 

All of the growth has been organic, he said, with Nordic helping to expand its geographic footprint into China, double the number of employees, and made significant investments for innovation and technology. 

CV1 still has a number of assets in its portfolio: German mobility solutions provider Sunrise Medical; Denmark-based off-shore steel structure manufacturer Bladt; Swedish home online retailer Ellos; and Danish sports e-commerce group Unisport.

"We're under no pressure to divest any assets," said Agnblad. "It's still very much a live vehicle and Nordic Capital will continue to hold a few more assets for a few more years."

Nordic Capital recently held a final close for Fund XI at EUR 9bn. 

"Healthcare represents one of our core sectors, with 40% of capital invested to date since Nordic Capital was founded. We expect that the new fund will have a similar focus on healthcare," said Agnblad. 

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